The month of July has not been kind to the Bitcoin and crypto market, contrary to earlier expectations. Several events have significantly shaken the market, such as the delayed debut of Spot Ethereum ETFs on July 2nd and reports of large BTC sell-offs by the US and German governments. These occurrences have contributed to a bearish sentiment in the market.
Despite the ongoing challenges, there is a glimmer of hope for Bitcoin and the overall crypto market. The upcoming release of CPI data on July 11 could potentially signal a turnaround. Cryptocurrency analyst CrypNuevo shared insights on the possible direction of the Bitcoin price in light of this upcoming data. Citing the potential for a rate cut based on the CPI data, CrypNuevo believes that such a move could positively impact the Bitcoin price.
Historically, rate cuts by the Federal Reserve have been favorable for the Bitcoin price. CrypNuevo predicts that an immediate rate cut or an announcement of an imminent rate cut could trigger a significant price increase in the crypto market. The analyst emphasizes the market’s tendency to anticipate the Fed’s actions and adjust prices accordingly based on economic indicators.
Analyzing the BTC 1-Day chart, CrypNuevo identified a significant wick at $53,400 that occurred in early July before a market recovery. The analyst predicts that at least 50% of this wick will be filled, as seen over the weekend when the price dipped to $54,000. A complete fill of the wick could have bullish implications, potentially leading to a price bounce from that level.
In the event of a price retracement, CrypNuevo points to a support level of $51,700 for Bitcoin. This level is seen as critical for bulls to defend in order to maintain upward momentum. A successful recovery from this support could propel the price towards $60,000. However, the analyst notes that $60,000 now acts as a resistance level for Bitcoin, presenting a challenge for further price appreciation.
The recent developments in the Bitcoin and crypto market have been turbulent, but there is optimism surrounding the potential impact of CPI data and rate cuts on the price. Technical analysis points to key support and resistance levels that could dictate the short-term price movements of Bitcoin. Investors and traders will be closely watching the market to gauge the potential for a bullish reversal in the coming days.
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